Indonesia's Wealthy Growing, High Prospects for USD-Based Insurance
Public interest in US Dollar (USD) based protection products is expected to continue increasing over the next few years. This follows projections that the affluent segment will account for approximately 7% of Indonesia’s total population.
Despite their limited numbers, Chief Product Officer of Prudential Indonesia, Astono Hermawan, stated that this group has increasingly complex financial planning needs. Affluent clients require coverage for international education, global travel, overseas investments, and cross-generational inheritance planning.
Through internal studies, Prudential highlighted the importance of maintaining purchasing power and the relevance of wealth value amidst the strengthening US Dollar and rising global USD-based needs. The study found that High Net Worth individuals require currency diversification due to concerns regarding wealth erosion caused by inflation and currency risks.
“Currently, we see more customers who are not only focused on the size of the protection benefits but are also considering how the value of that protection can remain relevant to increasingly global future needs,” Astono stated, as reported on Friday.
In addition to globalisation, the trend of intergenerational wealth transfer is acting as a new driver for the affluent segment in planning their future finances. Many families today are not only focused on building assets but also on ensuring that the value of their wealth and protection can be optimally passed down to the next generation.
“Customers are now not only looking for asset growth but also protection products capable of maintaining long-term family financial resilience, such as the PRUFuture USD product from Prudential Indonesia,” explained Astono.
For context, the Indonesian Life Insurance Association (AAJI) recorded an 8.2% year-on-year increase in insurance premium income during the first half of 2026. Total premium income for the life insurance industry reached IDR 94.75 trillion, while the number of policies grew by 7.7% to 22.44 million.